Kinnear guided Wimbledon to sixth place in the Premiership in 1993/1994 but left The Dons because of health problems following a heart attack against Sheffield Wednesday.
Kinnear left Luton Town last summer because the new owners felt a fresh change was needed but he is still held in high regard by fans from both Luton and Wimbledon.
An emergency board meeting following Paul Hart's sacking on Saturday night decided Kinnear was their man because of past experience regarding working on a budget and bringing through youth players.
Former boss Paul Hart was obviously disappointed to leave the club but has sent out this message to the Forest fans who continued to back him right until the end.
He said: "I'd like to thank the staff, players and, in particular, the supporters for all the backing and encouragement I have received in my three years as Nottingham Forest manager."